Medtronic MDT delivered robust fiscal first-quarter performance that generally met our expectations on the top line and slightly exceeded our bottom-line estimates, as the firm tightened its expense control. However, we don't anticipate any material changes to our fair value estimate from our incremental adjustments, and we think the shares are now fairly valued. We remain confident in Medtronic's wide economic moat, as the firm continues to introduce product improvements and new technologies. In particular, Medtronic's breadth and significant presence in key therapeutic areas allow the firm to catch up in instances when it has fallen behind on the technology front. We were most impressed by strong growth in the brain therapies, minimally invasive therapies, and coronary and structural heart units, which featured key products that delivered double-digit growth, including stent retrievers and the CoreValve transcatheter aortic valve replacement. We expect these product lines to remain in growth mode as product adoption and indication expansion fuel demand. For example, the new low-risk indication for CoreValve coupled with the most recent national coverage determination from Medicare should bolster steady demand through the midterm. The diabetes division saw challenging conditions as explosive growth in the United States slowed, but this was offset by strong demand for the 670g outside the U.S. Nonetheless, we remain fans of Medtronic's competitive position in this market. For the entire note, click here.
Debbie S. Wang
Wide-moat Baidu's BIDU second-quarter revenue was CNY 26 billion, close to the higher end of the guidance of CNY 25.1 billion to CNY 26.6 billion, up 1.4% year over year and 9% quarter over quarter. Its third-quarter revenue guidance range is a year-on-year decrease of 5% to an increase of 1%, a deceleration from the second quarter. Subtracting revenues from the spin-off, Baidu's core revenue guidance is between negative 3% to positive 3% year over year for the third quarter. Baidu's core (excluding iQiyi) revenue was down 2% year over year but up 12% sequentially, due more to moving healthcare customers' landing pages to Baidu's managed page and weak macroeconomics, and to a lesser extent because of higher supply, according to man agement. Baidu made an operating loss in the first quarter but turned profitable in the second quarter. Its non-GAAP operating margin was up from 1.7% to 7.4% sequentially. The firm's non-GAAP operating margin for Baidu Core was 18% in the second quarter, a 600-basis point increase sequentially, and management guided Baidu core's non-GAAP operating margin to rise above 20% in the third quarter. DAU of the flagship Baidu app has been making strikes, reaching 200 million in mid-August, versus 188 million in June, and 174 million in March. Baidu's smart mini program MAU was 217 million in June, up 49% sequentially. For the entire note, click here.
Chelsey Tam
沒有留言:
張貼留言